FCF= Net Operating Profit After Taxes (NOPAT)

+ Depreciation

– Gross fixed Asset expenditures

– Change in Net Operating Working Capital

bL = b

U(1 + (1 - T)(D/E))

d1=ln( P/X )+[ kRF+(σ 2

2 ) t ]

σ √ td2= d1 - σ√ t

V = P[ N (d1 )] - Xe-k RF t [N ( d2) ]

MVA t =Capitalt [EROIC t −WACC ]

WACC − g

EROIC t =NOPAT t+1Capitalt

MVA t =

[Salest (1+g )WACC−g ] [OP − WACC ( CR(1+g ) )]